Fightin’ talk: the regulatory backlash begins …
Far from coming out of a post-crisis period of grieving and re-learning how to engage with the wider world, the financial services industry looks like it is returning to its old belligerent self.
Regulation
French regulator raises temperature of debate in London
A heated argument that erupted between panellists at an event in London yesterday signals deep divides in Europe over the role that financial regulators should take as France and Germany introduce their own national rules.
German HFT proposals earn buy-side support
Market participants have expressed support for controversial new proposals in Germany to control high-frequency trading, including a requirement to obtain a licence or stop trading.
March deadline for code to tackle fixing of interbank lending rates
European regulators have until March to impose a code of conduct on banks contributing to the creation of the Euribor interbank lending rate benchmark. The deadline is included in recommendations published by the European Securities and Markets Authority and the European Banking Authority following their joint work on benchmark rate-setting processes in the wake of the Barclays Libor scandal and other rate-fixing revelations.
BATS trading errors highlight perils of technology arms race
US exchange operator BATS Global Markets’ revelation earlier this week that it may have accidentally breached best execution regulation on thousands of client transactions over a four-year period has been criticised by senior buy-side traders, who have expressed disappointment at the failure of exchanges to serve long-term investors.
Citi targets “dangerous” global collateral shortfall
Citi has established a set of alliances with Clearstream and Euroclear Bank that it says will transform the way broker-dealers manage their collateral, freeing up precious resources as onerous new regulations in the US and Europe burden banks with tougher collateral requirements.
Viewpoint: Time to Prepare for Your CFPB Exam (January 2013)
January 2013 By Jeremy T. Rosenblum and Stefanie H. Jackman, Ballard Spahr LLP The sky is not falling—at least yet. The ability of the Consumer Financial Protection Bureau (CFPB) to supervise smaller banks (less than $10 billion in assets) and other companies providing prepaid cards to consumers is currently limited. For participants in the […]
“Fragile” US equity market structure needs attention
The recent market data glitch on US consolidated tape C, in which investors were unable to view Nasdaq-listed stocks, highlights the need for regulation on resilience, according to Frederic Ponzo, managing partner at capital markets consultancy GreySpark Partners.
Thomson Reuters debuts FATCA compliance kit
Thomson Reuters has launched a tool to help financial institutions comply with the US Foreign Account Tax Compliance Act, widely known as FATCA, which requires banks to identify their US customers for tax purposes.
“Lobby wars” will hurt buy-side interests in Brussels says SunGard exec
As the European Commission prepares new rules that will reform Europe’s capital markets, buy-side market participants must be careful to ensure that they are not misunderstood and even side-lined by politicians in Brussels, warns David Morgan, director for trading and client connectivity, capital markets at financial technology provider SunGard.
Regulators should protect investor choice in the dark – TABB Group
New regulations that will affect how banks run crossing networks for their buy-side clients should avoid constraining investor choice by forcing a ‘one-size-fits-all’ approach to trading, according to Miranda Mizen, senior consultant at TABB Group.
Rogue trader terms identified as Switzerland’s oldest bank is forced to close
Ernst & Young has developed new software designed to catch employees engaged in corporate wrongdoing, as Swiss bank Wegelin and Co prepares to cease operations following the firm’s prosecution for helping US citizens evade taxes.
FIA hires derivatives regulation expert
The Futures Industry Association has appointed Allison Lurton as senior vice president and deputy general counsel, starting from 14 January.
Industry Views: What Will 2013 Bring for Prepaid and Emerging Payments? (January 2013)
January 2013 We wanted to start the year off with some perspective from industry thought leaders across the globe to find out what will shape prepaid and emerging payments in the new year. We asked several executives from a variety of companies as well as a few analysts to share their thoughts about what the […]
The Hottest Payments Topics of 2012 (January 2013)
January 2013 By Bill Grabarek, Senior Editor If anyone thought last year couldn’t compare with the events of 2011, they quickly were proved wrong as 2012 turned out to be every bit as transformational. In the U.S. market, we saw a fledgling federal watchdog agency, the Consumer Financial Protection Bureau (CFPB), go from crawling […]
Industry welcomes attempt to clarify alternative investment regulations
Further clarification on the European Union’s Alternative Investment Fund Managers’ Directive, due to come into force in July next year, has been welcomed by the Alternative Investment Management Association, the global hedge fund association.
In ‘War against Cash,’ MasterCard Takes Fight to Brazil with New Mobile Service (December 2012)
December 2012 By Adam Perrotta, Assistant Editor When MasterCard and global mobile carrier Telefónica joined forces to bring mobile financial services to 12 South American countries in early 2011, Richard Hartzell, president, Latin American and the Caribbean, MasterCard, said the initiative would help arm the card network with “the right artillery to strengthen our […]
The ART of risk management
Since the 2007 global financial crisis there has been a lot of debate on potential changes across the banking services industry and the potential consequences. Recent market surveys suggest that surprisingly little progress has been made in risk and compliance management and some lack of clarity as to what to do next. Reacting to regulatory change is one thing, but the real goal is to build clarity and confidence that banks are doing the right thing in the right way at the right time
Europe “will regret” financial transaction tax warns expert
The European Parliament has voted to approve the introduction of a financial transaction tax across 11 EU member states including France, Germany and Italy – but market participants warn that it may have unintended consequences.
FSA demands top-level AML supervision at HSBC in wake of $1.9bn fines
The Financial Services Authority has instructed HSBC to set-up a board-level committee with a mandate to oversee matters relating to anti-money laundering, sanctions, terrorist financing and proliferation financing.
FOA appoints new head of regulation
The Futures and Options Association has appointed former Financial Services Authority policy leader Natasha Stromberg as head of regulation, with core responsibility for working groups on energy, power, emissions, metals and other commodities-related areas.
CME Clearing Europe and Euroclear target OTC derivatives business
Market participants trying to clear OTC derivatives under new European trading rules will soon be able to use a service from CSD Euroclear and clearinghouse CME Clearing Europe that promises to make the job easier.
EU businesses “unprepared” for SEPA, warns survey
Europe’s businesses are unprepared for the arrival of the Single Euro Payments Area in February 2014, with many completely unaware of its consequences, according to new research by IT business services provider Steria.
